Answer:
It is cheaper to buy the product.
Explanation:
Giving the following information:
Production:
Direct material $45,000
Direct labor 30,000
Factory overhead (30 % is variable ) 98,000
Buy:
Total cost= $100,000
<u>I will assume that none of the fixed overhead avoidable. Therefore, we will take into account only the variable overhead.</u>
Total variable production cost= 45,000 + 30,000 + (98,000*0.3)
Total variable production cost= $104,400
It is cheaper to buy the product.
Answer:
Cost of goods sold as per average cost method = $92,458.5
Explanation:
As for the information provided as follows:
Opening Inventory 265 units @ $153 each = $40,545
Purchase 465 units @ $173 each = $80,445
Purchase 165 units @ $213 each = $35,145
Total data 895 units = $156,135
Average cost per unit = $156,135/895 = $174.45
In average cost method simple average is performed, whereas in weighted average weights are assigned.
Sale is of 530 units
Cost of goods sold as per average cost method = $174.45
530 = $92,458.5
The major factor that contributes to the decline of occupations in industries such as textile and clothing is due to the change of technology. Through the technological advancement, innovators are able to machines that work twice as fast as human beings.